FRONTIER'S LATEST NEWS

Frontier Oilfield Services Announces Another Acquisition

By SuperUser Account

DALLAS, July 10, 2012 — Frontier Oilfield Services, Inc (OTCQB: FOSI) announces its intention to acquire Chico Coffman Tank Trucks, Inc (“Coffman”), including its wholly owned subsidiary, Coffman Disposal, LLC for the sum of $17,408,348.00 subject to certain negative and positive adjustments based upon the amount, at the time of closing, of Coffman’s indebtedness, seller’s expenses and EBITA adjustments.

Coffman is a salt water disposal company with its primary base of operations located in North Texas with its trade and service area being in the Barnett Shale oil and gas field located in North Central Texas.

Coffman had audited 2011 revenues on $40.5 million with an EBITA of $3,263,929. Coffman’s assets are currently valued on its financials at $24 million and consist of accounts receivables, rolling stock (trucks and trailers), six permitted disposal wells and the headquarters real property.

Tim P Burroughs, President of Frontier Oilfield Services, stated, “We are pleased that Mr. JD Coffman will remain as President of Coffman Tank Trucks, Inc. under a five year employment agreement and assist us in the implementation of our future acquisition strategy.”

ABOUT FRONTIER OILFIELD SERVICES, INC

Frontier Oilfield Services, Inc.’s primary business focus on wastewater recovery and disposal has been selected due to the recurring nature of the revenues, the relatively high margins and the strong barriers to entry by potential competitors because of the limited supply of state permitted commercial disposal wells. In addition, as a result of breakthroughs in recent technology (the process by which shale oil and gas is extracted), exploration & production companies are faced with increasing volumes of, and thus challenges with regard to the disposal of produced fluids and saltwater. Frontier’s acquisition strategy in this highly fragmented, decentralized and essential sector of the energy services market, positions Frontier for potentially rapid expansion and substantial growth in the future.

FORWARD LOOKING STATEMENTS

Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in “Risk Factors” in the Company’s Forms 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission. Such risks factors include, but are not limited to, a limited operating history with no earnings; reliance on the Company’s management team; the ability to successfully implement the Company’s business plan; the ability to continue as a going concern; the ability to fund the Company’s business and acquisition strategy; difficulty in managing operations of acquired businesses; and limited trading in the public market for the Company’s common stock. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Hydraulic Fracturing Fluid Recovery & Disposal

One key component of the oilfield service industry is hydraulic fracturing fluid or saltwater disposal, commonly referred to as SWD. Operators are responsible for the disposal of flowback water, produced water and hydraulic fracturing fluid (“frac fluid”) – creating vast potential liabilities for the fast moving majors in the industry. In layman terms, the saltwater produced from the drilling and expansion of wells has to go somewhere. If the saltwater and drilling fluids are improperly disposed, the responsibility falls squarely upon the producer of said water.

Transporting wastewater, which is a byproduct of drilling and ongoing production, from an oil/gas well to a disposal site for a fee.

Disposing of the water in a state permitted disposal well for a fee. Disposal water is continually generated in both the well drilling and completion phase (flowback water) and while the well is producing oil/gas (produced water).

Skim oil is the residue which is salvaged and sold from the transported wastewater.

Did you know...

During the completion phase of an oil/gas well, fresh water is used to fracture the shale formation. A typical multi-stage frac process uses at least 100,000 barrels of fresh water. When this water “flows back” it is salty and must be transported away from the drilling site and disposed of in a permitted disposal well. The need for disposal of flow-back water occurs only during the drilling of a new well, however flow-back water disposal is often the second-largest expense of drilling a new well.

Water that comes to the surface during the normal oil or gas production process is naturally occurring briny water that is generated from deep within the earth along with the oil and gas. The need to dispose of “produced water” is on-going and continues throughout the life of the oil/gas well. Servicing this disposal need produces recurring revenues, frequently on a daily basis. Produced water disposal is usually the largest lease operating expense of a producing well.

In addition to receiving fees for transporting and disposing of salt water, Frontier Oilfield Services also generates revenue from the sale of “skim” oil. This oil comes mixed in with the salt water that the company transports and disposes. We salvage the oil prior to pumping the water into one of the disposal wells.